Homeowners who are behind in mortgage payments often make one mistake that, if not made, would allow them many more months to recover financially before losing their home. This mistake is when borrowers move out of their home before they are legally required to do so. And now, with the steep rise in the foreclosure rate over the past few years, there are even more reasons to stay put as long as possible.

Of course, a small number of homeowners realize the financial advantages of delaying the final move into a new apartment or rental house for as long as they can. Every month without a mortgage or rent payment is extra money that can be used to pay off other bills, keep on top of car payments, or simply save up for a security deposit or emergency fund. And as long as they still have legal rights to remain, there is no reason to move just yet.

Some homeowners even go to great lengths to get even more time from the bank to stay in their home. They do whatever they can to apply for solutions to foreclosure, request postponements of a sheriff sale, and defend the lawsuit in court for months. Finally, they file bankruptcy to drag the process out even longer. In many cases, this can result in months or years of living rent and mortgage free.

A far greater number of homeowners, though, fall behind on their monthly bills, listen to the lender's threats of foreclosure, and simply move out of their house. The property sits abandoned while the banks takes it through the legal foreclosure process, and then it sits abandoned while the bank hires a local Realtor to sell the home. In the meantime, if falls into disrepair and becomes a victim of squatters or people stripping the property of anything of value.

However, now that banks have so many foreclosures on their books, many foreclosure auctions are simply being postponed for no apparent reason. While more homeowners than ever are applying for assistance, even more sheriff sales are being delayed. In addition, lenders are often incompetent enough to proceed with a public auction of a home even if the borrowers are negotiating for a loan modification or other plan.

This indicates that the banks are voluntarily postponing some sheriff auctions in order to avoid having to declare the loans as losses and then declaring the properties as assets at their true market values. Banks have gotten away for years with overestimating values of homes in order to inflate the values of the loans on the properties and the securities made up of these mortgage debts.

A sheriff sale, though, has the result of voiding out all of these fraudulent financial calculations. The property is auctioned off for a very small amount, and the rest of the loan is written off as a loss. Then, the bank must take possession of the house if there are no third-party buyers and declare the fair value of the home on its balance sheet. This can be quite a bit less than the appraisal stated it to be at the time the loan was originated.

Thus, banks are avoiding this problem of living in reality by postponing sale dates with ease. Even if no one is living in the property, there can be a delay in the sale -- all the bank has to do is contact its local attorneys, who contact the court and sheriffs department to cancel the sale and reschedule it for the next month.

This is a new development in the foreclosure crisis that more homeowners should take advantage of. Banks do not want to own these properties, and they sure do not want to declare them at their true market values. With a little bit of effort, borrowers may be able to have the sale delayed for a quarter of a year or more, just because there is such a huge backlog of properties in some stage of foreclosure.

Homeowners who sell their homes through a short sale are often very concerned about the tax implications of the sale. The bank, by forgiving a portion of the debt, is then responsible for reporting the forgiven amount to the IRS as income to the borrowers. At tax time, the former homeowners are responsible for including this amount in their gross income and then paying taxes on it.

Thus, there is a strong possibility that homeowners who sell their home for less than what they owe on it will have to pay thousands of dollars out of pocket in order to cover the tax bill on the short sale. They thought they were losing the home but avoiding having to make an expensive payment to the lender. In the end, though, they lose the home and still have to make a large payment to the IRS.

Homeowners, though, may be able to avoid this situation if they fall under a couple of exemptions, or the amount of debt forgiven is classified a certain way.

For instance, if the borrowers are insolvent prior to the discharge of the debt. The amount that can be excluded from their income is that amount up to the extent of their insolvency. As an example, f the borrowers have $10,000 in assets and $18,000 in liabilities, they are insolvent by $8,000. Debt can be forgiven up to $8,000 before they would have to report it as income to the IRS. But any amount over $8,000 forgiven would have to be reported and taxes would have to be paid on.

There is also an exemption for debts that are discharged through the bankruptcy process. There is no limit to this exemption from income, as homeowners can exclude an unlimited amount of discharged debt if it has gone through bankruptcy. The only stipulations are that the borrowers be under the supervision of the bankruptcy court, and the court grants the discharge of the debt.

Foreclosed homeowners may also be able to have the debt forgiven as interest and other fees, which do not count as income. Only forgiven principal would be considered forgiven debt, so if the borrowers and bank agree that the amount not collected due to the short sale consists mostly of fees and interest, there may be no income due to the sale of the property. This exclusion, however, may be affected if the borrowers took a tax deduction for interest in previous years.

There are a number of tax issues that homeowners should be aware of when they are considering whether or not to go through with a short sale. Although they may end up with a 1099-C form at the end of the year showing a large amount of forgiven debt, this does not mean that they have to pay taxes on all of that income, depending on their financial situation.

Despite some tax issues, a short sale still remains a viable solution to foreclosure. In fact, the government has even loosened some of the rules on income due to short sales, as well as providing other incentives for lenders to consider alternatives to foreclosing on a home. With more foreclosures will come more attempts to help borrowers reduce the financial burdens that come with owning or losing a home.

Too many homeowners who have already lost their homes are looking for one final chance to get them back. They have contacted nearly every loss mitigation company, nonprofit organization, and government agency in the country, all of which have informed them that they do not qualify for any plan currently available to help them get their properties back after a foreclosure already been completed.

Is this true? Is there really no hope for borrowers whose homes have been sold and the auction has been confirmed? In most cases, this is not true, as there are still some remedies available after a foreclosure where a sale can be reversed and the owners given back ownership of their house. One of the main problems is that few companies or foreclosure specialists know about these last resort methods.

However, homeowners should be aware that these methods to get a home back after foreclosure may be very difficult to pull off. They should not be relied upon as the first option to stop foreclosure, as it can be much easier to qualify for a refinance, loan modification, or repayment plan. For the borrowers looking for one final opportunity, or those just trying to delay eviction for as long as possible, though, challenging the sale may be worth considering.

There are a number of grounds on which a foreclosure auction can be set aside, just as there are numerous claims to bring up in defending the lawsuit in the first place. In most cases, homeowners will have to bring their claims into the local court and attempt to have the sale reversed before they are evicted or the house falls into disrepair. The different types of claims that homeowners can bring into court are discussed more below.

The first way to challenge a trustee sale is based on irregularity in the conduct of the auction itself. This is often due to a lender or trustee not following the correct notice requirements to have a house sold through the auction process. Material violations of notice requirements may be enough to set aside the sale, although small technical violations may be ignored by the court unless they adversely affect the foreclosure or have the possibility of encouraging fewer bids or lower bids.

The inadequacy of the sales price may also be grounds to set aside a foreclosure auction, although the common definition of "inadequate" has been taken to mean shocking the conscience of the court. Courts in many different areas have either set aside or refused to set aside foreclosure auctions due to low sale prices at auction. It may be wholly dependent on the judge in the case to decide whether or not to reverse the sale.

For instance, some courts have decided cases such as these:

• $875 for a property with $27,000 in equity was not set aside
• $2,000 for a property worth $18,000 was set aside
• $10,304 for a property worth $57,500 was set aside

Thus, it may be very difficult to determine whether a price at auction is inadequate without bringing the issue into court.

An inadequate price coupled with irregularity in the conduct of the sale may make an even stronger case for the court to set aside the auction. Courts have decided over time that the lower the price of the property, the more any technical or minor irregularity or procedural violation will be taken into account. This may give homeowners strong motivation to challenge their trustee sale.

A final reason to set aside a sale may be an inadequate price plus unfairness to the borrowers. The definitions of "inadequate" and "unfair" will have to be fought out in court, but properties which sell for far less than they are worth may be a sign of bad faith on the part of the lender, which has a duty to obtain the highest price possible for a property it auctions. Especially if the lender turns around and sells the home for more soon after the sheriff sale, unfairness may be determined.

Homeowners who are relying on such defenses to save their home, however, may find themselves disappointed in the end. The further along the process their home goes, the more difficult it will be to hold onto it and get another chance to make on-time payments. These challenges to a sheriff sale may be successful, or they may not be. But they should be considered one of the last resorts after everything else has been tried, but before moving out of the house completely.

At the end of the foreclosure process, once all of the notices have been sent and published and the lawsuit has ended, a public auction is held to dispose of the property. This typically called a sheriff sale or trustee sale, and is the event during foreclosure where borrowers' ownership interest is transferred to the buyer at auction. But sheriff sales do not always go smoothly, and homeowners may need to find out if their home was sold or not.

For instance, if the lender called off the scheduled sale for any reason, homeowners may believe that their property was sold out from under them when they are, in fact, still the owners. Banks cancel auctions for any number of reasons, from not having an inspection done, to waiting for an appraisal, to a response by a request for more time from the borrowers themselves.

Another factor that may cause a sheriff sale to be scheduled but not confirmed is if a third party bids on the home, wins the auction, but can not pay the purchase price. If this is the case, the property may have to be put up for auction again, in the hope of finding a more willing and able buyer. If this happens, though, homeowners may not even know the first auction did not count, as they assume the house was sold and paid for.

This is why, after a sheriff sale, it is important for homeowners to make sure that their home was actually sold and properly confirmed by the county. If the property was not sold, the borrowers may be able to keep living in their home until a valid auction is conducted. This may take an additional two or three months to schedule, conduct, and confirm, and all of this time can be used by the homeowners to save up more money.

There are a number of ways to find out if a property has been sold or if an auction has been confirmed. Possibly the easiest way is for homeowners to call the county recorder's office or the clerk's office and ask them to provide the information as to who currently owns the property, as well as any liens on the property right now. If the bank purchased it, there will most likely be no liens, but if a third party took out a loan to buy it, there may be a new mortgage affecting the deed.

This would be the easiest way to determine the status of the sheriff sale, since the county in which the property is located keeps all of the records affecting the property. If the foreclosure went through but there was a problem with the sale, they will be able to give the homeowners that information, while the court will be able to inform them if a new auction has been scheduled yet.

But if no documents have been recorded to show a transfer of ownership, then the house may have to be auctioned again at a later date. Especially if it is a few months after the scheduled auction and no documents to show a transfer of title have been filed, it may indicate that the sheriff sale was not valid. This may be due to any of the reasons listed above, but especially if the high bidder could not pay, the house may just be auctioned again.

In the meantime, the original owners might still have possession and legal ownership rights of the property, just as they had during the foreclosure process. According to many state foreclosure laws, it is the confirmation of the sale that finally transfer ownership to the high bidder at the auction -- if that has not been done in a particular case, the borrowers may still own the property for now.

One of the complaints of many homeowners that face foreclosure but whose houses have significant equity is that their home sells for far less than its true value at the sheriff sale. In most cases, there is no one else bidding on the property besides the bank, and the bank only bids enough to cover the balance due on the mortgage or deed of trust. For homeowners in this situation, though, there may be another option.

Courts in the past have ruled that, because foreclosure is such a harsh remedy to a default of a contract, the use of the court and forfeiture of property should be a last resort. Especially in cases where there may be enough equity to pay off the loan in full as well as give the owners back some amount of money, selling on the open market may present a more equitable solution.

Thus, borrowers may be able to have their foreclosure enjoined for a reasonable length of time in which to list and sell their home. If there is enough equity to pay off the mortgage and receive some sort of gain on the sale, foreclosure should not be used unless there are no potential buyers. As well, open market sales present no risk to the lenders, who will be paid in full if the sale goes through.

The main issue holding this solution back is often the homeowners themselves, who are unable to use the courts with the same skill as the lender's attorneys. They may not know how to file motions to enjoin the sale, or not even respond to any of the legal paperwork the mortgage company sends them. When the borrowers do not respond to the foreclosure, then there is little the courts can do to help them.

Lenders also have a duty to the homeowners to obtain the highest price possible for a property even at a sheriff sale. Allowing the owners to list the house for sale on the open market can be an effective way to show that the bank has made efforts to retain their equity and avoid foreclosure. The lender must meet its fiduciary duty to the homeowners to get the highest price for a property, even if state laws allow a faster process.

Despite this duty, some lenders may be unwilling to stop foreclosure for long enough to sell the house. In these cases, homeowners may be able to file bankruptcy in order to take advantage of the automatic stay and then list the house on the open market. Filing Chapter 13 may allow the borrowers to move forward with an orderly sale in order to liquidate the property and avoid a sheriff sale.

In order to sell the house, take advantage of the equity, and avoid a foreclosure auction, homeowners may wish to consult an attorney about getting an injunction against the sheriff sale. Especially if there is a reasonable chance of retaining some equity, courts may understand that there is little risk to the lender of allowing the borrowers to go forward with a sale.

When homeowners fall into foreclosure and the bank or trustee has a public auction of the home scheduled to satisfy the debt, there are various duties that must be met for the sale to be valid. One that is not very well known or publicized, and one that banks may violate repeatedly, is the duty to exercise good faith and diligence in conducting the sheriff sale or trustee sale of the borrowers' property.

This means that lenders in a judicial foreclosure state or trustees in a nonjudicial foreclosure state must do their best to protect the homeowners' rights under the loan documents. Borrowers have a number of such rights that lenders need to observe in order for a sale to be valid. If any are violated, the homeowners may be able to have the auction rescinded, delay the eviction, or sue the lender for damages.

There are three main duties that mortgage companies and trustees have towards homeowners. These are as follows:

• The lender must remain at arm's length with the purchaser at the auction,
• The lender must conduct the sheriff or trustee's sale fairly,
• The lender must make a reasonable effort to get a fair market price for the sale of the property, and
• The lender must limit expenses of the auction to a reasonable amount.

If any of these duties to the borrowers are not met, the homeowners may have grounds to sue the lender for damages or to have the sale reversed.

However, despite the duties the lender has towards the homeowner and despite the potential penalties for not meeting these obligations, lenders routinely fail to meet them. Banks and trustees have little incentive to advertise the auction of a home in any but the most cursory manner, as they know there will be few bidders at the auction. But this may be a violation of the duty to obtain a fair price.

Some courts have held banks responsible for low bid prices at auctions, especially if the lender is the sole bidder at the sheriff sale and then turns around and resells the property at a higher price soon after. If the lender buys the property for cheap with no equity returned to the borrowers, and then sells the property to a third party and takes the profits for itself, the former owners may be able to sue for this difference.

Because banks often sell homes soon after the auction for more than they purchased the properties for at the public sale, this may indicate that they know they can get higher prices at foreclosure sales. But homeowners can not just let their lenders get away with stealing their equity. The banks force the sale of the home and then, despite having the duty to advertise the sale and obtain a fair price, just cover the unpaid mortgage and take higher profits later on.

While not every homeowner will be able to stop foreclosure, sell the home at a fair price on his own, or qualify for a loan modification or other solution, the courts have ruled that the banks have a duty to attempt to obtain a fair price in the forced sale of a home. When banks do not do this, as in 75-95% of auctions where the lender is the only bidder and only bids as little as possible, borrowers may want to examine how they can recoup the equity in their homes that the bank had a duty to attempt to obtain for them.

You hear a lot of talk about >foreclosure auctions; now learn what exactly goes on at them. It doesn’t matter if you are an investor looking to buy property at the auction, if you are the homeowner being foreclosed on or trying to get your house back, you should have a good idea on what to expect. This article is to give you general knowledge on what happens, keep in mind things can vary slightly depending on what state you live in.

Find An Auction
Most foreclosure auctions are going to be listed in your local newspaper. Before you attend that auction you may want to find out details on how to pre-qualify for bidding. Most of the time you will have to put down a deposit so the auctioneer knows that you are a serious bidder and can afford the property it you win. Getting pre-qualified is a good idea if you are serious and it saves time the day of the auction.

Do Your Research
Also, if you see a place that you’re interested in bidding on, you should go and do some research on the home. Look into any liens that may be on it, how much it is worth, what kind of area it is in, and what the value is of other places next to it. If there are a lot of foreclosure properties in the neighborhood, you may want to keep in mind that it lowers the value of the property. Also go and check out the home, look to see if it needs repairs and consider those cost if you are trying to come up with a price to bid. It is very important to do your research before the auction, this way you know what you are getting yourself into, before you bid.

The Day Of The Auction
When you get to the auction, it will start with the auctioneer reading legal notices as well as a legal description of the property. Then the auctioneer will begin taking bids on the property. Things can go quickly here, so be alert try to station your self in the middle front of the room, that way you can here what is going on. If no one was pre-qualified before the bidding, the auctioneer will ask the bidders for a deposit check, usually around 5 thousand for residential property.

Each time someone bids, the auctioneer with try to encourage higher bids from other people. It is their job to try and get the most money they can from the bidders. It really depends on the auctioneer, but bidding increments can be by $100, $500 or $1,000 per bid. The auctioneer will continue to increase bids; until it is completely obvious that no one else is will be bidding. This is where you get to hear “Going once, going twice, three times, sold!” The auction is now over.

After The Bidding Has Ended
Once the bidding has ended a foreclosure deed and purchase papers are drawn up and validated by the new owner or purchaser and the mortgage holder. Usually there will be a grace period of 30 days to allow the purchaser to find financing or come up with the money. After the 30 days a closing will take place, so that the new owner can officially take the title to the property.

This is the end of Part I for what happens at a foreclosure auction. Please read Part II if you would like to find out what happens after the purchaser has the property and what happens with the original owner.

In many counties, sheriff sales seem to be scheduled, canceled, and rescheduled numerous times before a home is finally sold. There are a number of reasons why a foreclosure auction may be canceled. Not all of them will result in a new sheriff sale being scheduled, but the best bet to find out when the next sale will be held is simply to call the county courthouse or the sheriff's department and ask them. When a sale is postponed, it is often rescheduled immediately for the next month.

Homeowners facing foreclosure on a house may convince a bank to delay a sheriff sale quite easily. If they are working on selling, refinancing, or loss mitigation, and they have a reasonable offer for the lender, it may accept and decide to hold off on the sale. Getting a one month extension on an auction is very easy for most homeowners and almost automatically approved by mortgage companies. Borrowers can even do this multiple times if the solution they are working on takes longer than expected.

The bank (the plaintiff in the lawsuit) may also voluntarily cancel a sale if the homeowners have already cured the foreclosure completely. If the borrowers pay back what they owe the lender, agree to a mortgage modification, sell the house, or pay off the loan and judgment through refinancing with a foreclosure lender, the bank has no more claim and the auction must be canceled. In this case, there would be no future sale date, unless the owners fell back into foreclosure at some later date. But then the entire legal process would have to start from the beginning.

Filing bankruptcy will also stop a sheriff sale immediately as soon as it is filed and the bank and county court are made aware of it. The automatic stay that goes into effect when a new bankruptcy is filed prohibits the mortgage company from any further collection activities, including selling the house at a foreclosure auction. The lender has to cancel the sale or have it reversed afterward if the bankruptcy is not known about until after the auction, and it is easier to cancel it beforehand.

Homeowners can also defend a foreclosure lawsuit and ask the courts to delay the sheriff sale. There are motions that the borrowers can file that will temporarily restrain the plaintiff from selling the house until the motion can be heard and ruled upon by the judge. This can get the homeowners an extra month or two before the courts schedule the motion for a hearing, during which time the bank can not sell the home. But this is somewhat rare, and it is easier to delay judgment on the lawsuit itself by defenses in court, rather than have the auction delayed after the fact.

In any event, many times the delay of the sale will only be for a month or two at the most. Banks do not want to push an auction back for several months at a time, since the homeowners may simply give up and abandon the home. If sales are held on the third Thursday of the month, the new auction will most likely be the next third Thursday. Most counties hold sheriff sales on predetermined dates, so it may be quite easy to find out when the property is scheduled for sale again. But it is also a good idea to call the county to make sure.

Although the sheriff sale of a property is not always the end of the line in the foreclosure process, homeowners should do what they can to have the auction postponed. Even up to the day before the sale, there are a few different ways that they could still try and stop the county property auction. But it would be a good idea to have some sort of solution worked out that will let the borrowers keep the home or sell it quickly, because most of these ideas only postpone the auction for a short period of time. They do not stop it entirely, as that is up to the owners themselves.

First, borrowers can simply call up the foreclosing bank and ask the customer service representative to postpone the sale because they are working on some plan to save the house. Many people would probably be surprised at how easily most banks will agree to hold off on the auction and give property owners an extra month to put together a long term plan to keep the house. Obviously, homeowners should have some solution being worked on and submit written proof to the lender, but the bank can stop a sale at any time, even a few hours before a home is scheduled to be sold.

Second, borrowers in foreclosure can try and work in the local court system for a better solution. If the house is scheduled for a sheriff sale at all, the mortgage company got a foreclosure judgment against the owners and the house is being sold to satisfy that judgment. But foreclosure victims can always hire an attorney to help them reverse the judge's decision or appeal it to a higher court if the bank violated other laws and procedural rules in getting the judgment in the first place.

Third, hiring a personal bankruptcy lawyer and filing Chapter 7 or 13 will immediately halt a sheriff sale. The bank will not be able to pursue collection activities for as long as the house is in bankruptcy, which may give the owners the extra time necessary to put together another plan. But borrowers should not file bankruptcy the day before or the day of the auction, because the sale will probably go through and then have to be reversed later on, which can be quite difficult.

Chapter 13 bankruptcy will result in homeowners being given a legal payment plan to get back on track with their mortgage and other debts. The court will expect them to pay the regular monthly payments plus a portion of what they have fallen behind. For many homeowners, this can be prohibitively expensive, so they should either make absolutely sure they can meet the requirements or have a longer-term solution in mind that can be worked on almost immediately and will result in more manageable payments. But bankruptcy can give owners enough breathing room to apply for a foreclosure loan or find someone to purchase at a short sale, among other potential options.

In many cases, having a sheriff sale scheduled indicates a critical point in the foreclosure process, as legal ownership of the property will be transferred to the high bidder at auction. Although this may not be the end of the road, depending on state foreclosure laws, homeowners should do what they can to postpone this date if they are attempting to find a longer term plan to stop foreclosure. Asking the bank to postpone, defending the case in court, and filing bankruptcy as a last resort can all help borrowers stop a sale and give them extra time to find better solutions.

Homeowners in foreclosure are rightfully worried about not being able to save their homes and how quickly they will be evicted after the sheriff sale. Although the lender and various "experts" will threaten them with the sheriff showing up the next day to violently kick them out of the house, this is just not the case in foreclosure situation. The county sheriff and the eviction crew will not show up the next day after the sheriff sale, and homeowners should ignore the fear-mongering that threatens this possibility.

Owners should be aware of the implications of the foreclosure auction, though. The sheriff sale will transfer ownership of the property, and the foreclosure victims will not own the house after this point. But this does not mean that the eviction process will happen automatically right after the house is auctioned, as there are more steps that will need to be taken by the new owner.

The high bidder at the auction will most likely have to have the sheriff sale confirmed (this is not a specifically detailed step in every state). This can take from a few days to a couple of weeks after the auction, depending on how quickly the courts and new owner act. But this is generally just a simple step in the foreclosure process after the sale that involves the sheriff and judge confirming the auction was for a legal amount and that the deed has now been awarded to the new owner.

The new owner will most likely be the original foreclosing bank that the homeowners had been dealing with in the first place to stop foreclosure. About 95% of foreclosures end up being purchased by the lender, rather than a third party.

In order to evict former homeowners, the lender will have to request the court grant it possession of the property and order the county sheriff to evict any remaining people or personal items and change the locks. This is a legal process, though. Homeowners should not fear that a bunch of government thugs with badges and guns will show up at their house the day after the sheriff sale to kick them out. Of course, this is exactly what happens, but at a later date if the foreclosure victims do not move out in time.

But the entire eviction process can take up to a month after the sale; throwing people out of their homes is not a simple process before or after a county auction. The court will have no problem ordering the eviction (unless the former owners go and try to contest the sale, eviction order, etc.), but the sheriff's department will have to give notice of the impending removal. This can be as little as posting a piece of paper on the property with three days notice to move. Thus, after the sheriff sale, former homeowners better be prepared to leave on their own or work out another solution.

People facing foreclosure should not be overly concerned about being kicked out of a house with little notice. The sheriff will not just show up the next day or a few hours after the sheriff sale, as there is still a legal process that must be followed for a bank to take back possession of a foreclosed property. Homeowners probably have at least two weeks to a month after the sheriff sale date to arrange for a new place to move into.

In any event, homeowners are always encouraged to call the sheriff's department to ask them when then eviction will take place. Even more promising, they can also usually ask for a few extra days or a week in order to move everything out and give up the house peacefully. There is still a chance to negotiate with the local government for more time (courts and sheriff) so that the former owners are not taken by surprise by the eviction.

Thus, the banks and government officials will not evict foreclosure victims right away after the auction, but there is no time to spare, either. Having a couple of weeks to move out can give people a chance to find a place and move in at their own pace, but even a month-long eviction process will go by very quickly. If in doubt, homeowners should contact their local government officials and ask about the eviction -- the courts or sheriff will be able to inform them of the date and try to work out the most reasonable solution. They want as little trouble after foreclosure as the former homeowners do.

A well-known index of home prices in the country indicates that property values fell over 10% in January in both large metropolitan areas and in wider geographic areas. This obviously indicates a worsening foreclosure crisis, and homeowners may no longer have enough equity to refinance or sell their homes outright. Many of them may be completely underwater by ten or hundreds of thousands of dollars.

The banks, too, are worried about this, because homeowners who feel they have nothing to lose by walking away will be much less inclined to try to stop foreclosure. Many people simply feel that it is not worth the effort to negotiate with a mortgage company to be able to keep paying a mortgage for a property that is increasingly worthless. In this real estate environment, selling at a short sale can help both the banks and owners unload a property and receive a fair price, and avoid taking the mortgage through foreclosure and having it sit on the open market for months.

Especially for homeowners who are worried about their finances, or are already feeling the effects of the recession, a short sale may allow them to avoid foreclosure very quickly. For the right price, many investors can put in an offer on the house within a few weeks, and the lender may be willing to put their foreclosure on hold while the sales process is pursued. Not all lenders allow short sales, but many of them are now willing to consider offers, because they know how overvalued properties were and getting anything to pay the loan is better than nothing.

The main benefit of the short sale is that it allows a sale of a house for its current market value or less, which may be far less than what the homeowners owe on the mortgage. The sales price can be negotiated between the buyer, seller, and lender, all of whom are interested in avoiding foreclosure and getting the most out of the deal. Many investors are expert at influencing the bank's estimate of the value, and will attempt to negotiate for as low a sales price as possible, which helps the homeowners because they will be able to sell to an interested party for a price that reflects reality.

The short sale can also be completed fairly quickly, compared to listing the house for what is owed on the mortgage and waiting months or years for local real estate markets recover. Once the homeowners have an offer, they can submit it to the bank and request that the foreclosure process be put on hold. The lender is often willing to do this, if it seems there is a reasonable chance they will get the mortgage paid off and avoid foreclosing on the house.

Benefits of a short sale far outweigh any potential drawbacks, especially in circumstances where the owners of a property owe more than their home is worth. Banks know that they would never be able to make up the entire amount of the mortgage if the property was taken all the way through foreclosure, so they are also more willing to negotiate a reasonable price when markets are declining. Although selling at a short sale does not directly save the home and allow the owners to continue living there, it can give the owners another option to stop foreclosure and deal with a significant loss or lack of equity.

One of the main points I try to keep hammering away at in terms of advice to homeowners facing foreclosure is that they should keep up with the legal process as much as humanly possible. This might involve looking up court records, receiving copies of documents that have been filed by the attorneys in the case, and even attending hearings before the judge. But unless homeowners keep themselves informed of what is going on during the foreclosure, they may find themselves making hasty decisions based on incomplete knowledge.

For example, take the case of the attorneys filing a motion to postpone the scheduled sheriff sale. Until this is done, even homeowners who have been attempting to get more time to stop foreclosure may have no idea that they are being another opportunity. If a sale is scheduled in the very near future, and the bank then decides to postpone it, they will more than likely not inform the foreclosure victims of this decision until after the sale would have taken place to begin with. Homeowners, though, can usually find out directly from the court system if their sale has been canceled for the time being.

The attorneys in the case will usually file a motion to stop the sale and request that it be rescheduled within thirty days or so. That is why banks, soon after making the decision to postpone, will already have a new foreclosure auction date; the attorneys just reschedule the home to be sold at the closest date within the coming month. In effect, this means that the homeowners have asked for more time to save their home, and the lender has agreed to delay a scheduled sheriff sale for a short period of time in order to give their clients the benefit of the doubt and all them another chance to save their home. At that point, the lender has ordered its local attorneys handling the foreclosure to move the court to stop the sale and postpone/reschedule it.

So, until the sheriff sale is rescheduled and the house is sold, the homeowners will have some time to work on another solution. Of course, the lender will want to see some kind of proof that a solution is being worked on even before deciding whether to postpone or not, but homeowners can provide a minimal amount of paperwork and a letter explaining their intentions. For instance, maybe they have found someone to buy their house, or they are working on a qualifying for a loan modification or forbearance agreement. All they really need to present to the bank is the offer and supporting documents explaining why they fell behind and what is being done to fix the situation.

But, until the house is sold at auction, the foreclosure victims can keep living in the property. The bank, since it is the plaintiff in the foreclosure lawsuit, has great leeway to extend the sale or work out a solution out of the courts. They can dismiss the case at any time if the homeowners are able to avoid foreclosure, or they can ignore any further requests to stop the sheriff sale, if they do not believe the homeowners will be able to work out the difficulties.

In a small number of cases, homeowners may find that the sale has been postponed even without their knowledge or intervention. Although this is quite uncommon, it deserves a passing mention. What most likely happens is that the attorneys have entered the postponement with the court if they found out that they made a mistake somewhere in the foreclosure process. If they proceed with the sale despite not giving notice, not following the law, or otherwise missing something important, they will probably just start the sheriff sale process over again and not risk having the foreclosure reversed. But again, this is pretty rare.

The most important element in saving a home from foreclosure is the time needed to work out a solution. Homeowners are free to request as much time as they need, and banks are free to extend sale dates as many times as they want. But, it is ultimately up to the homeowners to keep track of when their home will be sold out from under them, and it is important that they understand how to get a sale delayed. Even knowing how to do this, though, is not enough. They also need to keep track of the lender through the court system and make sure they have been given the time they requested, and they need to learn this as early as possible, in order to make the most effective use of their options to stop foreclosure.

One of the most justified concerns homeowners have about being in foreclosure is how much time they have to save their homes. This is such an important issue that many homeowners simply give up on their homes and move out long before they have run out of time. They simply assume the sheriff will show up any day and kick them out! Unfortunately, this is a dangerous assumption to make, and homeowners frequently have more options than they could ever believe possible to increase the time they have available.

In fact, it is reasonable to state that any homeowner can still stop the foreclosure process at nearly any time up until the date of the sheriff sale. Of course, if that date is on the horizon or approaching in the next few weeks or months, then there is still some time, but the foreclosure victims need to get something together rather quickly. Stopping a sheriff sale is vitally important if there is any realistic plan to save the home and pay off the mortgage or reinstate the payments. A sheriff sale will nullify almost any plan that was being worked on before the auction.

It is also important to not that the bank will not accept just a regular payment once the home is in the foreclosure process, nor will they accept any form of partial payment. The lender will most likely demand the entire amount that is behind right now, unless they are willing to work out some sort of repayment plan with the owner. This is one reason that homeowners, as soon as they have recovered from a financial hardship, should call the lender to find out exactly what plans they can offer and how much money will have to be forked out to them to begin a plan.

But, if the bank does not accept a forbearance agreement or other plan, there are a few other ways to stop the foreclosure date that do not involve direct intervention by the mortgage company. Sometimes, the homeowners need to take control over their home and take advantage of other opportunities.

First, the homeowners can simply file Chapter 13 bankruptcy to avoid foreclosure. That puts all creditor collection efforts on hold (including the mortgage company's attempts to collect) while the debt is being dealt with by the court system. It can stop a sheriff sale the day before the sale, and might work as a last-ditch effort. Although it is not the most preferable way to stop foreclosure, homeowners should keep it in mind if they are seriously short on time. In many cases where the homeowners are nearly out of time, no other way to postpone the auction will work.

Second, just paying back the entire amount behind will get the mortgage reinstated. It will bring the status of the loan back to "current," and end the foreclosure process. If there are no arrears, and no part of the loan is in default, the bank can not continue foreclosing. Admittedly, this is also the most unlikely scenario presented here, mainly due to the unwillingness of the bank to work out a solution and the fact that they typically add thousands of dollars of late fees, interest, court costs, and attorney fees to the total amount needed to reinstate the loan. But if homeowners can come up with the money, they will be able to save their home immediately.

Last, going into court and asking the judge to order the lender to try to work something out is always a potential solution. Very few homeowners take up this opportunity, though, simply due to an (ir)rational fear of the legal system. But the judge can order the bank to consider a repayment plan, or offer some other resolutions besides going straight through with the legal process of foreclosing on the home. The judge can also put a hold on the sheriff sale, since he is the one ordering the sale in the first place. In fact, the judge wields an enormous amount of power over the bank, for some unknown reason, but this power can be used by the homeowners in self-defense, if necessary. Passing up this option is a major mistake for homeowners attempting to prevent foreclosure.

The bottom line is that foreclosure is never inevitable once it starts. To make sure they have the best chance of saving the home, foreclosure victims merely need to take advantage of what options are available and make sure they can make the payments on time again, or come up with the money to reinstate, or have enough time to pursue an option like a foreclosure refinance or a sale. Having a sheriff sale scheduled is obviously a major stumbling block, but homeowners have more options than they are aware of to obtain the time necessary to work on a solution to foreclosure.

When a property goes into foreclosure and a sheriff sale date is scheduled, homeowners will rightly feel nervous about the outcome of the auction. If the property sells for more than what is owed on the mortgage, they will receive the proceeds of the sale. This, however, rarely happens, and it is much more likely that the house will be auctioned for quite a bit less than the amount owed on the loan, creating the possibility of being sued after foreclosure for a deficiency judgment. Having an idea of what to expect after the sheriff sale, whether proceeds or deficiency, can help homeowners begin to plan for a future after foreclosure.

The main problem is that of the initial bid amount in predicting how much a particular house will sell for at auction and if the homeowners will receive any proceeds or not. Does the county begin the auction based on the purchase price, or current market value, or balance of the loan? Homeowners with no experience, who are unsure of the value of their property may assume it is the purchase price, but it should be readily apparent that this figure is unrealistic as an auction starting price.

This is because the purchase prices of any group of properties will be all over the map. The purchase price date may have been ten years ago or more, or it may have been less than a year. The longer it has been since the home was purchased, the higher it will sell for in relation to that price, typically, due to appreciation of home values over time. A home purchased in 1984 for $20,000 may be worth $300,000 now, depending on the area and condition of the home, and starting a bid price at $20,000 would make little sense, even if the mortgage was under that figure.

If one examines how much foreclosure properties sell for compared to the market value of the house at the time of sale, this is also very unstable, but a more accurate predictor. During the current foreclosure crisis, certain areas of the country have been high much harder than others, with some neighborhoods declining by 40-50%, while others just a few blocks away may not decline in value at all. A general guess for what a property would auction for compared to its current market value might be around 75-80%. But some areas like Detroit have properties that have sold for just a few thousand dollars ($1-$5,000), and it is very difficult to estimate a market value of any house when no appraiser can walk through or inspect it, as is the case when the homeowners continue to occupy their home until the time of the sheriff sale.

To begin to seriously estimate the current value of a property and what it may sell for at a county foreclosure auction, homeowners may want to obtain a list of recent foreclosure sales from their county and do some research on current market values and sales prices. (Especially when trying to make a point to the county that values have declined and ad valorum taxes should be decreased, in order to boost property values, the smaller area that is focused on, the more accurate.) Having some date of what similar properties in foreclosure have been auctioned for and possible estimates of current market value, homeowners will be more readily able to predict what price their own property may sell for at the county sale.

Sheriff sale lists can be found at the county courthouse or directly from the sheriffs department. These are the first, most reliable sources of this data that homeowners should rely upon. Numerous foreclosure listing websites also provide this data, but it is quite frequently out of date, inaccurate, or simply incorrect. When focusing on a small area, such as particular city or county, the results of this type of foreclosure research can be much better when official county information is used. Many counties now publish past and upcoming sheriff sale lists online, making the project that much easier.

Foreclosure victims are correct in feeling that they are running out of time when the bank has scheduled a sheriff sale of their home. The possibility of being sued after foreclosure for a deficiency judgment is also a cause of worry (although an unfounded one), but by researching the results of sheriff sales for similar homes, the owners can more accurately know what to expect. Although the chances of receiving proceeds from a sale may be small, and other methods to stop foreclosure should be relied upon long before hoping for a positive outcome of a foreclosure auction, it is always a better idea to be prepared and know the current status of a home, rather than leave everything up to chance.

Besides missing the first mortgage payment that leads to the foreclosure process, the most important event during foreclosure is the sheriff sale of the property. This is the event that will effectively transfer ownership of the house from the current owners to whomever wins the auction (usually the foreclosing bank). Many homeowners are able to postpone a sheriff sale if they are working on an option to save the home, but stopping the auction numerous times may be more difficult. The homeowners, though, should take every opportunity to gain more time, even if they have realistic chance to prevent the foreclosure from taking their homes.

When a bank postpones a sheriff sale, they typically have to begin the entire process over again of publicizing the auction in local newspapers and in public places throughout the county. Although this will cost them more in the long run, since they hire local attorneys to do this, they would rather have the loan paid back in full by the homeowners instead of losing tens of thousands of dollars at auction. But this is one reason why homeowners may ask for an additional week or two and end up with a month or more of time that they can work on a method to avoid foreclosure. Depending on how much publication of the sale needs to take place, and this depends on state foreclosure laws, they may have more than a month to keep working on saving their homes.

The decision to stop a foreclosure auction lies almost entirely with the foreclosing lender. They can postpone the sale as many times as they want, with the same house being published in the newspaper week after week, until the bank simply grows tired of the homeowners and goes through with the county auction. Lenders typically decide to postpone only if they believe the homeowners are putting together a viable solution to the foreclosure, such as refinancing or selling, and the homeowners are able to prove they are working on such a plan. Of course, the workers at banks are also human beings (sometimes), and they may be willing to postpone the sheriff sale just because a client calls them crying and begging for more time. This tactic should be used sparingly, although it can be even more effective than any other way to ask for more time.

If the house is quickly approaching a sheriff sale, homeowners should immediately make contact with the mortgage company and find out what they need to do to get more time. A plan to stop foreclosure can be offered to the lender, and many of the representatives will be sympathetic to foreclosure victims. Especially in larger banks, the homeowners may call and speak with a different person every time who is willing to try to postpone the sale. This can result in a great amount of additional time being given to homeowners to work on their plan to save the home.

Although it may seem as though the bank would actively want to pursue the foreclosure and get it off the books, so to speak, many large lenders are working on hundreds or thousands of foreclosed properties. Many of the owners will simply give up on the home or be too frightened to ask for more time. The ones that are seriously looking into ways to stop foreclosure, though, will be able to convince the bank that they deserve more time. The bank would willingly offer more time to solve the problem, and it is easy enough to postpone the foreclosure auction. The extra fees and interest will just be added to the balance in the end, anyway, and be counted as an even larger tax deduction for the lender.

Foreclosure victims who are actively pursuing an option to save their home, even if it is the tenth option in as many months, often find that their lender is still willing to work with them to give them as much time as is reasonable. Of course, the patience of any company will wear thin after a length of time, but homeowners should take advantage of their options and examine every option possible, if they are seriously interested in stopping foreclosure. Most banks would rather have their money instead of the home, and clients would like to keep the home and pay back their mortgage obligation. This creates a situation where it is in both parties' best interests to continue working together for as long as there is a reasonable solution to work on.

Most homeowners will know if their lender has decided to sell their property at sheriff sale, because they will receive constant phone calls, letters, and even a notice on their home informing them of the date of the sale. However, there is often a good amount of confusion during the foreclosure process, and homeowners may miss the date and find themselves not knowing if the sheriff sale was postponed, conducted on the courthouse steps, or was canceled altogether. This can create a very uncertain situation, especially if the homeowners were working on a plan to stop foreclosure before the sale was scheduled. There are three sources of information regarding the sheriff sale, though, and homeowners should consult with each of them to find out if they have run out of time to save their home.

The first place to call is the lender's foreclosure or loss mitigation department to talk to someone there about the status of the home. They will be able to tell the foreclosure victims when the house was supposed to go to sheriff sale, and if it has, or if there was a postponement, etc. If it went to sale, the homeowners might have to call the REO department (Real Estate Owned), to find out the current status. Banks may be the most unreliable of sources, though, as homeowners may be forced to speak with a low level employee or a representative from another country who has little information about the true status of the property.

This is why calling the local attorneys that handled the foreclosure process and sheriff sale is another good resource for information regarding the property. The lender's attorneys will also be able to tell the homeowners if the house was auctioned off, because they are the local reps for the bank and file all of the foreclosure paperwork with the county courthouse. They know when the sale is or was, since they are the ones that do the publication and send the necessary information in the mail about the sale, if these actions are required by state foreclosure law. But they should also know what happened with the property after the sale, as they inform the bank of the final outcome of the foreclosure auction. Attorneys may be generally finished with the property at that point, though, depending on who purchases the property at the sheriff sale.

The last place to turn to is the county itself, usually the courthouse or the sheriff's office. The civil services division of the courthouse is probably the best place to start for most foreclosure victims, since the courts handle the foreclosure process, approving the default judgment, ordering the sale, etc. However, it is the sheriff's department that actually auctions the property, so calling them can also get the homeowners the information they are looking for. If the sheriff sale is stopped, the county will also be able to inform the foreclosure victims of the new date, or if one has not been scheduled yet.

Again, though, homeowners looking for information about the sheriff sale of their home might want to call at least couple of these sources, if not all three, as they will probably find themselves talking to a $300 a week secretary for the attorneys, some low level clerk at the courthouse, or brand new employee for the lender located in India, who will not really know what is going on and does not have any up-to-date information for regarding the sheriff sale. Plus, a call to the lender is usually a half-hour time commitment while the homeowners wait on hold and are transferred from one person to another. So, calling all of the sources will most likely result in the homeowners finding out if they have more time to stop foreclosure, or need to work on a plan to get out of the house and avoid eviction.

It is no secret that the sheriff sale is the most important event that homeowners in foreclosure will experience. Many foreclosure victims, when facing a sheriff sale, would like additional time in which to work out a solution. Postponing a sale gives both lenders and homeowners a chance to get the loan reinstated or paid off, and benefits both parties. As little known as this issue seems to be, there are three distinct ways in which a homeowner can have a sheriff sale postponed while they work on another solution to stop foreclosure.

Asking the lender to postpone the sale is the first method, although it is commonly overlooked. Lenders, though, will put a sale on hold, in many instances, in order to give the clients another chance to save their home or get out of foreclosure. The mortgage company will usually request some documentation to prove that the foreclosure victims are actively seeking a solution, such as a loan modification or foreclosure bailout loan, or any other plan that they may have to save their home.

The second way to have a sheriff sale postponed is when the homeowners petition their county court for additional time. This option is especially appropriate in cases where the lender is not willing to give the homeowners any more time to save the property from foreclosure. The county court can automatically postpone the sale regardless of the lender's intentions. Again, the homeowners will usually have to provide some proof that they are working on a viable solution that will stop the foreclosure entirely. This method of stopping a sale is the least-known option.

The third common way that homeowners can use to prevent the sheriff sale is by filing a Chapter 13 bankruptcy to stop foreclosure. Most of the time, this is the least-desired option on the part of the homeowners. Foreclosure victims would rather find a different solution to foreclosure other than filing bankruptcy. However, if no other option is available to the homeowners, bankruptcy to get a sale postponed may give the homeowners one last chance to save their home. During the bankruptcy, the foreclosure victims will have a chance to pay back their debts through a payment plan that will give them protection under the bankruptcy law. Of course, bankruptcy is a much more in-depth process, and homeowners should consult a lawyer to determine if this is a reasonable last ditch effort to prevent losing their home to foreclosure. Although many homeowners would rather avoid this option, it may present the one chance the homeowners need.

These three methods of stopping a foreclosure auction are the most common options that homeowners may have. It is very easy to ask the lender for a postponement, but then all of the decision-making power is in the hands of the bank. Requesting that the court automatically postpone the sale is another option that is almost never talked about in the foreclosure industry. The final option, bankruptcy, is usually considered by the homeowners to be the last resort to prevent them from losing the home and if there are no other ways to gain additional time. As soon as a homeowner is in danger of missing more than one payment, they should seek out as much foreclosure information as they can, so there are more options to stop foreclosure and the situation does not progress to a sheriff sale. It is much easier to stop foreclosure before a sale is scheduled.

In the foreclosure process, the sheriff sale is one of the most important events. Too often, homeowners will have a reasonable solution to stop foreclosure, but they do not have enough time to see it through. A postponement of the sale, though, would give the homeowners just the amount of time they need to save their home and get their loan back on track or paid off. There are three common ways that foreclosure victims can use to have the sheriff sale put on hold or stopped completely while they work on their solution to foreclosure.

The best way to have a sheriff sale postponed is simply to ask the lender to put a hold on it. This commonly-overlooked option benefits both the lender and the homeowners by giving them another chance to get out of the foreclosure process. Most of the time, the mortgage company will request documentation that proves that the foreclosure victims are seeking a long-term solution to foreclosure, such as selling the foreclosed home, working out a foreclosure loan, or any other option that applies.

The most commonly overlooked option to postpone a sheriff sale is for the homeowners to request help from the county court system. The court can grant an automatic extension of the sale, giving the homeowners additional time to save their home. This is very useful even when the lender will not give the foreclosure victims another chance, because the court can override the lender's decision. The homeowners, though, will have to prove that they have a solution to foreclosure that they are working on, in order for their request to have any merit.

A final way that homeowners can prevent the bank from selling their home is by pursuing a Chapter 13 bankruptcy to prevent foreclosure. This is usually the least desired option for most homeowners, though, as they would usually rather find a better solution to the foreclosure than filing bankruptcy. This option should be used as a backup, though, in case no other way to stop the sale is available. Bankruptcy to stop foreclosure can give the foreclosure victims one more chance and a little more time to save the home, while they are under the repayment plan that gives them protection under the law. Bankruptcy can be a very complex process, which is why any homeowner considering this option should consult with an attorney to determine if filing bankruptcy will put them in a better situation with their home. Many homeowners would like to avoid filing bankruptcy, but it can present one more chance to save the home from foreclosure.

These options to stop a sheriff sale are the three most common options that homeowners have in foreclosure. Asking the lender for a postponement is very simple but it leaves the decision up to the mortgage company. Using the court system is an overlooked option and gives the homeowners more of a chance to present their case to an unbiased third party that can grant an extension of the sheriff sale. Bankruptcy, the final option discussed here, is often considered a last resort by homeowners who want to save their homes, but it can give them one more chance if they have run out of other options to stop foreclosure. Any homeowner in danger of foreclosure should seek out as much foreclosure advice as they can, in order to learn more about the foreclosure process and prevent the situation from getting to a point where the home will be auctioned.

Even though the sheriff sale is probably the most important event in the entire foreclosure process, many homeowners and foreclosure specialists are unaware of how they can gain additional time or get their sheriff sale rescheduled. Getting a sale held off on benefits both foreclosure victims and lenders, as it gives everyone another chance to get the defaulted loan paid off or back on track. There are a number of ways to stop a sheriff sale, but three methods are more common than others.

The easiest way to stop a sheriff sale is simply to ask the lender to put it on hold. Most lenders will do this in order to give the homeowners more of a chance to pay back their loan or get out of foreclosure. Usually, they will want to see some sort of proof that the homeowners are pursuing some solution to the foreclosure, like selling or refinancing, or any other method to stop foreclosure.

Another way to postpone a sale is if the homeowners ask the court to grant them additional time to solve the problem. This is especially useful if the lender is unwilling to postpone the sale any further. The court can automatically have the sheriff sale held off and allow the owners to pursue their solution. The foreclosure victims would still have to provide some proof that they're working on a solution to foreclosure, of course. In our experience, this is the least known, least difficult way that a homeowner can gain some extra time to work on a solution to stop foreclosure.

The final way that is generally used to stop a sheriff sale is by filing bankruptcy to stop foreclosure. Obviously, this is the option that is least desirable to most homeowners that are in danger of losing their homes. Most would rather do anything than further damage their credit by filing a Chapter 13 bankruptcy. But if there is no other option besides losing the home to foreclosure, homeowners can file bankruptcy just to get the entire process put on hold. While they are in bankruptcy, everything that is involved in the filing is put on hold, giving the foreclosure victims one more chance to seek protection under the law and pay back their debts. There is a lot more to bankruptcy, of course, and it may not be a great option for homeowners who have other options to stop foreclosure, but it can be relied upon as a last resort for foreclosure victims who are intent on saving their homes no matter what.

These are the three most common ways that can be used to postpone a sheriff sale. The easiest is to ask the lender, of course, but this puts all of the decision-making power in the hands of the mortgage company. Seeking a postponement from the county court system is a little-known but effective method to gain additional time to stop foreclosure, as well. Bankruptcy, usually considered a last resort by most homeowners, sometimes has to be relied upon if there is a valid solution to foreclosure but if the lender and court will not provide additional time. Most homeowners should seek out foreclosure advice as soon as they miss more than one payment, so that they are not in a position to have to get their sheriff sale postponed. Ideally, the foreclosure process will be stopped long before a sheriff sale is even scheduled.

Many homeowners who are behind in payments are surprised when they find out the bank is planning on selling their home out from under them to satisfy the defaulted loan. They feel that the foreclosure process is moving too fast, and that they are being notified of the sheriff sale with too little time to plan any alternatives to stop foreclosure. It may be, though, that the bank has had the foreclosure sale scheduled for weeks, without the homeowners ever being aware of the fact. This post is meant to help foreclosure victims learn where they can go to find out if the bank is planning on selling the property.

To begin with, if the homeowners are worried about a sheriff sale of the property, then they are probably painfully aware of the fact that they are behind in payments -- perhaps by a few months, sometimes by as much as a year or more. If they are reasonably far behind in the payments (typically 3-6 months), the mortgage company has probably hired an attorney's office to pursue the foreclosure against the clients. This is because lenders use local law offices to sue the homeowners in the county court. Some law offices are very large, such as Trott and Trott, which covers nearly all of Michigan, and some are very small offices serving only a few towns. In either case, as soon as the attorneys become involved, they will begin sending letters to the homeowners to collect on the mortgage, and will proceed towards scheduling a sheriff sale of the house.

Calling the lender's attorneys can be the single best source of information about the current status of the foreclosure of the property. The attorneys will know exactly when the sheriff sale of the property is, and can forward a request from the homeowners for a postponement of the auction directly to the correct contact at the bank. Lenders are more likely to be on good terms with their lawyers than they are with their clients, by the time the foreclosure process is in full gear, and the attorneys may have more up to date information about the process than the lender, since the lawyers are the ones actually filing the foreclosure paperwork with the courts on behalf of the lender.

Alternatively, the homeowners can call the county sheriffs department for information regarding the date of the sheriff sale, as they are usually the ones who handle the foreclosure auctions directly, and transfer ownership of the property once the sale is completed (specifics vary by state and county). The county sheriffs office will maintain schedules of when properties have sold or when they are going up for sale, and can give the foreclosure victims the date they are looking for, or inform them that no sale has yet been scheduled.

If the homeowners need more time to save their home from foreclosure, they may want to try getting the auction date postponed, so there is a chance to find a loan to stop foreclosure or sell the home to a private investor or friend/family member. The attorneys office can forward the request directly to the lender, who will make a decision on whether to postpone the sale or not. If the postponement is granted, then the lender tells the lawyers to take the sale off of the schedule with the county and will reschedule it for a different date.

But to find out if a sheriff sale has been scheduled for a property in foreclosure, homeowners should contact either of two offices: the lender's attorneys, and the county sheriffs department. They are the ones who will be handling the sale most directly, so they will know the exact date of the sheriff sale. Knowing when a sheriff sale is scheduled will give the homeowners a clear time-frame for completing any of their plans to stop foreclosure, or for requesting a postponement beyond the original foreclosure auction date.

In situations where additional time is needed to sell your home, or obtain alternate refinancing, you can be very successful in gaining an extra 30-90 days to complete your transaction. Generally, a pre-approval from a lender, or an executed sales contract must be presented to the lender and their attorneys for a postponement to be granted. Always remember to send your request directly to your lender, as well as the law firm they have hired to pursue the foreclosure against your home. This way you can make sure that all parties to the transaction have a copy of your request. Many banks are notoriously disorganized, and you don't want them to use the excuse that they never received your letter.

We have been successful literally hundreds of times in convincing lenders to postpone a sheriff sale or delay the filing of a foreclosure lawsuit. In fact, we have seen homeowners use our tactics that we have refined through years of testing and use (included in our stop foreclosure book) to postpone their sheriff sale for over a year beyond the original date. But even more importantly, we have successfully worked with lenders to postpone an eviction, after the sheriff sale, for several months past the “lockout date” while we assist the former owners in finding alternatives to being kicked out of their home.

Having a sale date is not the end of the world, but it is one of the most important steps of the foreclosure process. If at all possible, you want to get your sheriff sale postponed for as long as possible. Hopefully, this will give you the time you need to work out a permanent solution and never have to worry about foreclosure again.

If you're unsure how to request a postponement, please visit our other blog entries for more information, or consider reading our e-book to view example letters that we have written. These letters have been successful for vast numbers of our clients to stop foreclosure. Ultimately, the decision to postpone the sale is in your lender's hands, but a simple, sincere request in writing can go a long way in helping you gain extra time to solve the foreclosure and get back on track with your mortgage.